A USDA Rural Development loan, commonly referred to as a “USDA loan” or “RD Loan”, will allow you to buy a home with no down payment. Yes 100 percent financing loans still exist, however, few people know about the benefits. The USDA zero down home loan may be the right solution for your next home purchase.
By choosing a USDA Rural Housing Mortgage you can get competitive interest rates backed by the USDA guarantee. Mortgage terms include a 15 year fixed rate mortgage for a lower rate and faster payoff, as well as a 30 year fixed mortgage for lower monthly payments.
See our new USDA Rural Development Loan Calculator to estimate payments!
For more information on a USDA Rural Development Loans, call 1-800-555-2098.
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How to buy a home with no down payment in Michigan
The USDA RD loan is a strong no down payment mortgage option that many Michigan families can use to buy a home in eligible rural areas. The program is guaranteed by the USDA so banks and lenders have reduced risk when lending, which can translate into competitive rates and flexible terms.
Qualifying for a USDA Rural Development loan is very similar to an FHA mortgage however there are two important requirements you must meet for income limits and rural home location. Learn about no down payment mortgage programs.
Zero down loans for first time home buyers
Rural housing loans are a strong option for those buying their first home or anyone without a down payment saved, letting you get into a home in an eligible area with little or no money out of pocket.
USDA income limits and eligibility map
Before you start shopping for a home, call us to see if you can qualify for this preferred loan type. One main qualification is that the home must be in an eligible “Rural” area. Visit our USDA Rural Development eligibility map documentation. There are also maximum income limitations which must be met. Visit the Rural Development Income Limits on USDA website to confirm eligibility. If you qualify, a USDA Rural Development Loan may be the best mortgage available!
What Are the Benefits of a Michigan USDA Loan?
The Michigan USDA Rural Development loan is a great loan option that allows home buyers to buy a home with no down payment and flexible mortgage terms. You may want to consider a RD Loan if you have had credit issues in the past and do not have money saved for a down payment. Beyond the down payment, RD loans have several other benefits including low mortgage insurance (PMI) in the form of a guarantee fee, low mortgage rates, and easier requirements than a conventional loan.
List of USDA loan benefits
- No Down Payment Required
- Low Mortgage Insurance (PMI) with the Guarantee Fee
- Buy soon after bankruptcy
- Buy soon after foreclosure
- Low interest rates
- Low total mortgage payments
- Flexible qualification guidelines
When buying a home if you do not have a 20% down payment, most loans require private mortgage insurance (PMI) which adds to your monthly payment. USDA loans are different because they have a guarantee fee in place of PMI. The current guarantee fee is 1.00% Up Front and .5% annually which is substantially less than the 1.75% Up front and .85% annually for FHA loans (Effective October 1st 2016). This allows for lower overall mortgage payments.
What are the USDA mortgage rates?
The USDA guarantee reduces risk for the lender on this loan type, which allows banks and mortgage lenders to offer competitive mortgage rates compared to some conventional loan options. As with any mortgage, a lower interest rate means a lower monthly payment, so it's worth comparing your USDA rate quote against other eligible programs.
What are the qualifications for a USDA Loan in Michigan?
Lastly, qualifying for a USDA Rural Development Loan is easier than conventional financing. You may be able to eligible buy a home with only 2 years following a bankruptcy and only 3 years after a foreclosure. Conventional financing requires 4 years after bankruptcy and 7 years after a foreclosure.
Can I use a USDA loan anywhere in Michigan?
No. USDA Rural Development loans are only available on homes in USDA-eligible rural and suburban areas — many parts of Michigan outside major metro cores qualify. Check the USDA eligibility map or ask your loan officer whether a specific address qualifies.
Is a USDA loan only for first time home buyers?
No, USDA loans are not limited to first time buyers. Any qualifying borrower purchasing a primary residence in an eligible rural area can apply, subject to household income limits and USDA credit guidelines.
Can I refinance an existing USDA loan?
Yes. USDA offers streamlined refinance options for existing USDA loan holders in addition to the purchase program. Call us to review your options.
Still have questions? See all frequently asked mortgage questions or call a mortgage expert at 1-800-555-2098.
What Michigan USDA loan clients say
Rated 4.9 out of 5 from 1004 Google reviews of Riverbank Finance LLC.
“As a first-time homebuyer, I really appreciated how informative and patient Anthony was throughout the entire process. He took the time to explain each step clearly and made sure I felt comfortable and confident in my decisions. Communication was always prompt and helpful, and I consistently felt like I was in good hands. I’d highly recommend Anthony to anyone looking for a knowledgeable and reliable mortgage broker.”
“Anthony Bird was fantastic through our home purchase experience. He was always available for our questions and made sure the process was as smooth as possible and that we knew all our options. This was our second time using him and would recommend!”
“Sonya was AMAZING to work with! I had a challenging situation and she found me a great option for my mortgage, whereas other companies flat out said, “nope, can’t help you.” I closed this week and the entire process was smooth and Sonya was very accessible/responsive to my questions along the way. I am extremely pleased, and thankful, for having found Sonya at Riverbank, for my mortgage.”
“We can’t say enough great things about Michaele! Buying a new home is a huge decision, and throughout the entire process, she made us feel confident, informed, and genuinely cared for. As a family of five preparing to move into our new home, there were plenty of questions and moving pieces along the way. Michaele was always quick to respond, patient with our questions, and willing to go the extra mile to make sure we understood every step. We never felt like just another transaction—she truly had our family's best interests at heart Her professionalism, knowledge, and attention to detail helped make what could have been a stressful experience feel smooth and manageable. Thanks to her guidance, we were able to focus on the excitement of finding the right home for our family. We are incredibly grateful for all of her hard work and would highly recommend her to anyone looking for a mortgage professional who is not only excellent at what she does, but also genuinely cares about her clie”
“Tomas F. is absolutely amazing, and I’m so thankful he was my loan officer. As a first-time homebuyer, I had a lot to learn, and he walked me through every step of the process, taking the time to educate and guide me along the way. There were definitely some stressful moments, but Tomas was always there as my advocate. He prepared my file so thoroughly before underwriting that the processor and underwriter already had everything they needed, making the underwriting phase smooth and surprisingly quick. If rates drop, I already plan to refinance with Tomas. I trust him completely and am confident that he will handle my file with the same care, diligence, and professionalism. He’s not only effective at what he does, but also kind, patient, and genuinely invested in helping his clients succeed. I would recommend Tomas to any homebuyer, but especially to first-time homebuyers. If you’re looking for someone who is trustworthy, patient, diligent, and highly effective, give Tomas a call.”
“Josh was amazing to work with. He went well above and beyond with every aspect of our mortgage approval. He personally cares about his clients. His interactions with us were nothing but professional, helpful, informative, and timely. For our next house, we will definitely choose Josh!”
“I’ve had the pleasure of partnering with Michaele Daugin on several client transactions, and she consistently goes above and beyond for her clients. Michaele is knowledgeable, responsive, and dedicated to making the mortgage process as smooth as possible. Her professionalism, attention to detail, and commitment to exceptional service make her a trusted resource for homebuyers. I highly recommend Michaele to anyone looking for a reliable and experienced mortgage professional.”
“I highly recommend Damon Grosz for your loan needs. Stress free and closed in less than 3 weeks. Absolutely amazing experience created by Damon.”
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